Break-Even Calculator
Find the break-even point for your business or product. Calculate units, revenue, and time to profitability.
How to use this calculator
👉 Fill in the boxes below and your answer appears instantly — no maths needed, we do it all for you! 🎉
In plain English — what does this do?
💵 A money helper! It works out things like how much to save, how much you owe, or how much you’ll have in the future. Just fill in the boxes and you’ll get your answer.
The break-even point is the level of sales at which total revenue equals total costs — meaning no profit and no loss. Below the break-even point you are losing money; above it you are profitable. Break-even analysis is used by businesses, entrepreneurs, and product managers to understand how many units must be sold before a product or business becomes self-sustaining.
Rent, salaries, insurance…
Materials, packaging, shipping…
BREAK-EVEN UNITS
BREAK-EVEN REVENUE
CONTRIBUTION MARGIN
CM RATIO
Units needed to reach target profit
What is Break-Even Calculator?
The break-even point is the level of sales at which total revenue equals total costs — meaning no profit and no loss. Below the break-even point you are losing money; above it you are profitable. Break-even analysis is used by businesses, entrepreneurs, and product managers to understand how many units must be sold before a product or business becomes self-sustaining.
How to use it
- 1️⃣ Enter your fixed costs — expenses that don't change with output (rent, salaries, insurance, equipment).
- 2️⃣ Enter the selling price per unit.
- 3️⃣ Enter the variable cost per unit — costs that scale with production (materials, packaging, shipping).
- 4️⃣ Optionally enter a target profit to find the sales needed to hit that goal.
- 5️⃣ The calculator shows break-even units, break-even revenue, and contribution margin.
Formula
💡 See it in action — a real example
❓ Common questions
- What are fixed costs?
- Fixed costs are expenses that remain constant regardless of how many units you produce or sell — rent, salaries, insurance, loan repayments, and equipment depreciation. They are incurred whether you sell 0 or 10,000 units.
- What are variable costs?
- Variable costs change in direct proportion to output — raw materials, direct labour per unit, packaging, payment processing fees, and shipping. As you produce more, total variable costs rise proportionally.
- What is contribution margin?
- Contribution margin is selling price minus variable cost per unit. It represents how much each sale contributes toward covering fixed costs and then generating profit. A higher contribution margin means you reach break-even faster.
- How do I use break-even for pricing decisions?
- If your break-even volume seems unrealistically high, consider raising the price (if the market allows) or reducing fixed or variable costs. Sensitivity analysis — changing one variable at a time — reveals the most impactful lever.
- Does break-even account for taxes?
- This calculator uses pre-tax figures. For after-tax break-even, divide the fixed cost target by (1 − tax rate) before entering it, or use the target profit field to model post-tax goals.